Food inflation eases marginally on base effect

Both food and non-food inflation eased marginally in early September, while inflation in the fuel group surged.

Cereals, pulses, vegetables and poultry products among food products, along with non-food items such as fibres and oilseeds, contributed to the downward trend. The base effect of the previous year, when food inflation clocked in well above 15 per cent, also contributed to the dip seen in the latest reported week.

According to data released by the Commerce and Industry Ministry, the annual inflation in the Food Articles group, based on the Wholesale Price Index, rose 9.47 per cent in the week ended September 3, slightly lower than the 9.55 per cent year-on-year rise in the previous week. The fuel index climbed 13.01 per cent, higher than 12.55 per cent annual rise in the previous reported week.

On a week-on-week basis, food prices were a tad higher with the index rising to 195.4 from 195.1.While pulses and wheat dipped sharply during the week under review, onions shot up by 43 per cent on an annual basis. Potato rose 21 per cent and fruits were up 23 per cent.

Inflation in non-food articles, which include fibres, oilseeds and minerals, was recorded at 18.50 per cent during the week under review, compared to nearly 20 per cent in the previous week. Food inflation has been hovering near the double-digit mark since July-end and even went above 10 per cent for a week in mid-August.

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